SOURCE: Daxor Corp.

Daxor Corp.

February 15, 2012 08:30 ET

Daxor Announces Receipt of Order Granting Request to Withdraw Petition for Review and Notice of Finality

NEW YORK, NY--(Marketwire - Feb 15, 2012) - Daxor Corporation (NYSE Amex: DXR), a medical instrumentation and biotechnology company, received notice from the Securities and Exchange Commission ("SEC") on Friday, February 10, 2012, that it's request to withdraw a petition for review and notice of finality had been approved. The Company had originally filed the Petition on October 26, 2011 and requested that it be withdrawn on November 22nd.

On August 31, 2011 an administrative law judge of the SEC issued an initial decision pursuant to Section 9(f) of the Investment Company Act of 1940 finding that Daxor was operating as an unregistered investment company in violation of Section 7(a) of the Act.

The management of the Company and the Board of Directors disagreed with the administrative decision and initially intended to appeal this decision. On further review by the Board of Directors and our attorneys, it was determined that it was in Daxor's best interest not to appeal the decision which would be expensive and distracting, and instead register as an investment company. The Company will also continue to provide disclosures about its operational activities on a quarterly basis although this is not required as an investment company.

Dr. Joseph Feldschuh, the President of Daxor, said: "While we do not agree with the SEC's decision, we respect that decision and the basis for it. We will register as an investment company. We will also, on a voluntary basis, continue to disclose our operating activities as we have done previously. Daxor is primarily dependent on income from its investment activities to support its marketing and research activities for its BVA-100 Blood Volume Analyzer. If income from operations and/or the mix of our assets change in the future, we may submit a request to the SEC to file once again as an operating company. For the Year Ended December 31, 2011 we will file our 10-K report as required. At the same time, we will begin the process of registering as an investment company."

The month ended January 31, 2012 was the most successful January in the Company's history for the sale of Volumex kits for use with the Daxor BVA-100. It is too early to tell whether this trend will continue, but we are hopeful that the medical community will understand the need for measuring a patient's blood volume precisely rather than using surrogate tests and clinical guesstimates which can be grossly inaccurate.

Previous published studies from Columbia University have shown the disparity between experienced clinicians estimating a patient's blood volume in heart failure and the actual blood volume of the patient. More importantly, the clear finding is that experienced cardiologists cannot accurately determine what the patient's total plasma volume is or what the total red cell volume is. The BVA-100 enables blood volume to be determined with up to 98% accuracy.

Contact Information

  • Daxor Contact Information:
    David Frankel
    Chief Financial Officer
    dfrankel@daxor.com
    212-330-8504